Organic Tea Market Size, Share & Trends Report

Organic Tea Market Size, Share & Trends Analysis Report By Product (Camellia Sinensis-based (Green, Black, Oolong, White), Herbal), By Taste, By Form, By Distribution Channel, By Region, And Segment Forecasts, 2020 - 2027

  • Published Date: Aug, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-4-68038-937-1
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 80

Report Overview

The global organic tea market size was valued at USD 334.6 million in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 16.2% from 2020 to 2027. The rising importance of flavonoid-based food and beverages, which have antioxidant properties, is expected to expand the market scope over the next few years. Furthermore, growing concerns related to the harmful effects associated with cadmium on human health are expected to expand the scope of nutritional goods derived from organic crops. Organic tea has multiple benefits. Through various studies, it has been found that such products are helpful in improving digestive health. It also helps in improving the activity of healthy bacteria in the gut, thus improving gut health. Furthermore, organic tea is known to contain theanine, which reduces the high level of anxiety. It also intensifies relaxation by decreasing drowsiness and lowering the heart rate. Such products contain caffeine, which boosts the focus and attention of the human body.

U.S. organic tea market size

The aforementioned health benefits are expected to increase the adoption of these products among health-conscious consumers in the near future. Demand for products with low caffeine content has been increasing. The trend has been strongly influencing the market growth. Decaffeinated organic tea has been taking a sweep on the market. These products contain less than 2.5% of caffeine, which is beneficial for people suffering from sleep deprivation and disturbance. Over the past few years, the industry has been witnessing an increased number of manufacturers who sell decaffeinated variants of organic tea. For instance, Twining and Company Limited, a U.K.-based tea company, sell decaffeinated green tea bags, which offer a smooth and balanced combination of taste and flavor.

Turmeric tea has been gaining massive popularity among consumers. Over the last half-decade, it has become one of the best-selling herbal teas, along with hibiscus, peppermint, chamomile, and ginger variants. Such products are helpful in improving physical and mental stress response and as a result, have been taking functional teas at a different level, which is more suitable to the modern lifestyle. As a result, demand for organic tea is expected to witness significant growth among urban professionals, older age group people, and performance athletes.

Product Insights

Camellia sinensis-based organic products accounted for the largest share of more than 70.0% in 2019. Ease of accessibility has resulted in a wider penetration of the product across the globe. Furthermore, the industry participants have been increasingly spending on developing innovative products under the white, black, green, and oolong categories in order to cater to everyone’s taste and health indicators.

The herbal tea segment is expected to witness the fastest growth during forecast years with a CAGR of 17.1% from 2020 to 2027. The rapid growth is attributed to rising awareness regarding healthy lifestyles among generation X, Y, and Z. A vast number of product variants are available under the categories, such as chamomile, peppermint, ginger, hibiscus, eBrazilcea, rooibos, sage, lemon balm, rosehip, and passionflower.

Taste Insights

Flavored organic products accounted for the largest share of more than 80.0% in 2019. These products are flavored by using inclusions and extracts. Through inclusions, blossoms, pieces of dried fruit, herbs, or spices are directly added to the tea leaves for both visual as well as sensory effects.

Similarly, various extracts and essential oils derived from leaves, fruits, blossoms, roots, or other parts of a plant are used. These carry a distinctive scent or flavor. The extraction of these extracts can be a complicated process. For instance, the vanilla flavor is produced by soaking the vanilla bean in alcohol, which requires a precise method. In contrast, some flavors are easy to derive like lemon for which lemon peel is pressed to produce oil.

Distribution Channel Insights

Hypermarkets and supermarkets accounted for the largest share of more than 35.0% in 2019. As a large variety of products are available in the market, finding the specific product suitable to one’s taste can be hectic. Thus, supermarkets and hypermarkets that offer a large number of alternatives can be considered the most suitable way to shop for these products, leading to the growth of the channel.

Online stores and D2C are expected to witness the fastest growth during forecast years with a CAGR of 17.2% from 2020 to 2027. Online platforms offer a chance to the leading and small tea brewers to reach the consumers. Some specific manufacturers of specialty tea prefer offering freshly brewed tea products, which makes online a suitable place as the product undergoes a quick preparation only once the demand is placed. Thus, the rapid growth of the channel for the market is inevitable.

Form Insights

Leaf and powder accounted for the largest share of more than 45.0% in 2019. This is attributed to the first-mover advantage associated with leaf and powder variants. Furthermore, these products offer a choice to the consumers to decide the taste of their tea, which can be preferred both strong as well as mild. The buyers are likely to opt for such products as they are comparatively economical and affordable.

Global organic tea market share

The tea bag segment is expected to witness the fastest growth during forecast years with a CAGR of 17.0% from 2020 to 2027. These formats are being preferred owing to their easy use almost anywhere and everywhere. Consumers who are well-versed about the taste of their tea can carry these products all alone and summon the tea as per their desire without bothering about the availability of the raw material and appropriate brewing method.

Regional Insights

Asia Pacific held the largest share of over 35.0% in 2019. Tea is considered a serious affair in most Asian countries. The consumption of tea in the region is dated all the way back to the beginning of the recorded history of the region. People enjoy tea along with morning breakfast, during mid-day breaks, and along with friends and relatives. Different forms are consumed across China, Japan, India, Myanmar, South Korea, and Taiwan. Along with being the largest consumer, the region is considered to be the largest producer of organic product variants.

Central and South America are expected to register the fastest CAGR of 18.5% from 2020 to 2027. Along with Camellia Sinensis based tea, the consumers of the region have been well versed with the strong taste of the herbal tea variants, including Yerba mate and guayusa. The strong popularity of such drinks across countries, such as Brazil, Paraguay, Uruguay, and Argentina, is expected to remain a favorable factor for the industry growth in this region.

Key Companies & Market Share Insights

The market is expected to witness strong growth potential over the next few years. Product launches have been paving the way for the penetration of the product. For instance, in January 2019, Mindful Inc. introduced a ready-to-drink organic electrolyte tea. The company has been focused on creating next-generation functional products for consumers that prioritize health, wellness, and sustainability. Some of the prominent players in the organic tea market include:

  • Compass Tea Company

  • Davidson's Organics

  • Little Red Cup Tea Co.

  • Numi, Inc.

  • PepsiCo

  • The Coca-Cola Company

  • The Hain Celestial Group, Inc.

  • Tielka

  • Unilever

  • Wessanen

Organic Tea Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 387.5 million

Revenue forecast in 2027

USD 1,122.8 million

Growth Rate

CAGR of 16.2% from 2020 to 2027

Taste year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Revenue in USD thousand and CAGR from 2020 to 2027

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Product, taste, form, distribution channel, region

Regional scope

North America; Europe; Central & South America; Central & South America; Middle East & Africa

Country scope

U.S.; Germany; U.K.; China; Japan; India; Indonesia; Brazil; South Africa

Key companies profiled

Compass Tea Company; Davidson's Organics; Little Red Cup; Numi, Inc.; Pepsico; The Coca-Cola Company; The Hain Celestial Group, Inc; Tielka; Unilever; Wessanen

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Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global organic tea market report on the basis of product, taste, form, distribution channel, and region:

  • Product Outlook (Revenue, USD Thousand, 2016 - 2027)

    • Camelia Sinesis Based

      • White

      • Black

      • Green

      • Oolong

      • Others

    • Herbal

  • Taste Outlook (Revenue, USD Thousand, 2016 - 2027)

    • Flavored

    • Plain

  • Form Outlook (Revenue, USD Thousand, 2016 - 2027)

    • Tea Bag

    • Leaf & Powder

    • Liquid

  • Distribution Channel Outlook (Revenue, USD Thousand, 2016 - 2027)

    • Hypermarkets & Supermarkets

    • Convenience Stores

    • Online & D2C

    • Others

  • Regional Outlook (Revenue, USD Thousand, 2016 - 2027)

    • North America

      • The U.S.

    • Europe

      • The U.K.

      • Germany

    • Asia Pacific

      • China

      • Japan

      • India

      • Indonesia

    • Central & South America

      • Brazil

    • Middle East & Africa

      • South Africa

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